﻿Is a Comparison Website the Best Place to Find the Cheapest Payday Loan?

Comparison websites are places that many people go to in
order to choose the best price for their financial products. They exist for all
sorts of things from supermarkets to hotels and insurance to loans. They are
used by lots of people as they are quick and convenient but are they really the
best way to find the cheapest payday loan?

How do comparison websites work?

A comparison website will enable you to compare a selection of things without having to get a quote from each one or visit multiple websites. All you do is put in your details once, with regards to what you are looking for and then they will come back with a lost of lenders that will be able to help you. This list is generally in price order with the cheapest at the top, so you will be able to clearly see which would be the cheapest for you to use. Then you can even apply directly to that lender through links in the website, so it is very quick and simple to use. They exist for all sorts of things including payday loan companies.

Shortcomings of comparison websites

It all sounds great, but there are a few things to be aware of. Firstly, comparison websites normally do not include all lenders. They might only pick a selection of them and they may pick the ones that benefit them the most. Comparison websites get paid commission for any leads they generate, which is why they make it so easy to apply for the loans by clicking through links on their website. Although this is perfectly legitimate, it can mean that they may only choose to list lenders that will give them a good commission. This means that you might be missing out on better deals. There may also be lenders that do not want to be on comparison websites and so can only be dealt with directly.

How to find about payday loans

So if comparison websites are not the best way to find a payday loan how do you find out about them? Well, it can be wise to look at a few comparison websites anyway just to get an idea of what companies are on them and how much they cost. You can also use search engines to look for them bearing in mind that those with a higher advertising budget will feature higher as they will be able to pay for sponsored listings. Search engines can be hard work though as there will be pages and pages to scroll through. Another place to consider looking is on personal finance forums There are likely to be discussions about payday loans on these forums. The good thing about these sites is that people will be discussing their experiences. This will help you to see whether there are some lenders that seem to be better than others. It may also be a good idea to ask family and friends. Some of them may have had payday loans in the past and will be able to let you know what the experience was like and whether they would recommend the lender that they used.

The best way to choose

Choosing between lenders can be tricky It can be easy to think that the cost is the only thing we should worry about and that is why comparison websites have sprung up; so that people can easily compare prices. However, there are other things that you should also be looking at in a lender, such as their reputation, their charges if you repay late and things like that. It is a good idea to look at their website, communicate with their customer service and get an overall idea of what they seem to be like as a company.

Using several different methods to find out more about
payday loan companies can be a really good idea. Then you will have a good
selection to pick from and you will be able to then compare them to each other.
Obviously, the cost will be a factor but you will be able to look at other
things as well. It is good to think about what things are important to you so
that you can compare them across the different lenders. It might eb that you
want a lender you have heard of, one with cheap late payment fees, one that is
flexible or things like this. Consider what is important to you and then look
at the website of the lender and contact them in order to find out. By
contacting them you are also testing what their customer service is like as you
will be able to see how quickly they get back to you, how polite and friendly
they are and most importantly how helpful they are.